Zagreb - The opposition on Thursday warned that inflation in Croatia remains about twice the eurozone average and cannot be curbed by current government measures, while the ruling HDZ stressed that the country’s record-high credit rating is an important boost for citizens.
During a parliamentary debate on reports by the Croatian National Bank (HNB), Deputy Governor Sandra Švaljek said February inflation stood at 3.8% and had been driven by strong growth, consumption, employment and wages. Cumulative inflation since mid-2021 is about 35%, while wages have risen by around 50% on average, meaning real wages have overall recovered despite uneven effects, she said.
Opposition MPs argued that households are struggling, with little money left after basic expenses, and warned that price caps cannot solve structural inflation. Boris Lalovac (SDP) highlighted sharp increases in housing and utility costs, including rents rising 40% year-on-year, and cautioned Croatia could face a prolonged period of inflation.
Bridge MPs said pensioners are among the hardest hit and criticised the HNB as a passive observer of government policies, while Sandra Benčić (We Can!) argued inflation is domestically driven, particularly in services, food and housing.
HDZ MPs defended government policies, with Danica Baričević pointing to Croatia’s upgrade to an A credit rating with a stable outlook as evidence of economic stability. She said the higher rating would attract investment, create better-paid jobs and support living standards, underpinned by political stability.